I have done many 1031, and never did a Reverse 1031 and was advised by the Qualified Intermediary that they are more difficult and expensive. 

Firstly, I think this might actually be a good situation. 

If they are difficult, the current landlord may not give you a straight answer because they want them to find a place and move out.

Hi, pre foreclosure in all of its permutations, before the bank sends Notice of Default (NOD) or efter which is state even county dependant but often starts a 4 week clock till the trustee auction are the 2nd most difficult deal scenario and IMHO only experienced investors should bother, the 1st most difficult deal scenario are bidding at the court house steps on lord only knows what is being auctioned off sometimes even 2nd mortgages, you need to do so much home work to attempt to reduce your risk at the court house steps...Pre foreclosure no one talks about these issues, always about the nice sounding stuff like "motivated seller" get a good deal etc etc both are usually not the case.- 95% of folks in pre or post NOD want to stay in their house, keep their house inspite of them 100% will loose the house at the auction. 

What are things to look our for in this situation?

Difficult to tell from the website exactly what type of Passive Investments are available: Fixed Term or Open-Ended.

It's not difficult to find tenants if the property is marketed correctly.

The eviction process is really not that difficult as long as they don’t appeal it I’ll give you the attorneys name if you would like.  

It’s been incredibly difficult to see this situation unfold, especially given how much work and sacrifice went into saving for these properties.

It’s difficult to get ahold of Xander, he hides behind his staff.